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The Constant Elasticity of Variance (CEV) model significantly outperforms the Black-Scholes (BS) model in forecasting both prices and options. Furthermore, the CEV model has a marked advantage in capturing basic empirical regularities such…

Computational Finance · Quantitative Finance 2018-03-29 Axel A. Araneda , Marcelo J. Villena

We present a new formulation for the emergence of classical dynamics in a quantum world by considering a path integral approach that also incorporates continuous measurements. Our program is conceptually different from the decoherence…

Quantum Physics · Physics 2025-05-23 Harsh Arora , Bishal Kumar Das , Baladitya Suri , Vaibhav Madhok

We propose a new way to perform path integrals in quantum mechanics by using a quantum version of Hamilton-Jacobi theory. In classical mechanics, Hamilton-Jacobi theory is a powerful formalism, however, its utility is not explored in…

High Energy Physics - Theory · Physics 2025-09-03 Mustafa Türe , Mithat Ünsal

The pricing of options, warrants and other derivative securities is one of the great success of financial economics. These financial products can be modeled and simulated using quantum mechanical instruments based on a Hamiltonian…

Soft Condensed Matter · Physics 2008-12-18 Belal E. Baaquie , Claudio Coriano , Marakani Srikant

This paper explores advancements in quantum algorithms for derivative pricing of exotics, a computational pipeline of fundamental importance in quantitative finance. For such cases, the classical Monte Carlo integration procedure provides…

We propose an alternative method for Feynman path integrals on compact Riemannian manifolds. Our method employs action integrals along the shortest paths. In the case of rank 1 locally symmetric Riemannian manifolds, we prove the strong…

Mathematical Physics · Physics 2015-12-22 Yoshihisa Miyanishi

In this paper we analytically study the problem of pricing an arithmetically averaged Asian option in the path integral formalism. By a trick about the Dirac delta function, the measure of the path integral is defined by an effective action…

Pricing of Securities · Quantitative Finance 2013-11-28 Peng Zhang

We define a deterministic integral with respect to irregular paths as a limit of standard line integrals and completely describe a class of all paths for which this integral exists for functions with H\"older exponent in the range of (0,1].…

Classical Analysis and ODEs · Mathematics 2023-09-13 Yevgeniy Guseynov

Through a very careful analysis of Dirac's 1932 paper on the Lagrangian in Quantum Mechanics as well as the second and third editions of his classic book {\it The Principles of Quantum Mechanics}, I show that Dirac's contributions to the…

History and Philosophy of Physics · Physics 2020-03-31 N. D. Hari Dass

Richard Feynman's method of path integrals is based on the fundamental assumption that a system starting at a point A and arriving at a point B takes all possible paths from A to B, with each path contributing its own (complex) probability…

Quantum Physics · Physics 2022-10-06 Masud Mansuripur

The goal of this paper is to define stochastic integrals and to solve stochastic differential equations for typical paths taking values in a possibly infinite dimensional separable Hilbert space without imposing any probabilistic structure.…

Probability · Mathematics 2019-09-30 Daniel Bartl , Michael Kupper , Ariel Neufeld

A path integral method, combined with atomistic spin dynamics simulations, has been developed to calculate thermal quantum expectation values using a classical approach. In this study, we show how to treat Hamiltonians with non-linear…

Quantum Physics · Physics 2024-08-12 Thomas Nussle , Pascal Thibaudeau , Stam Nicolis

We introduce, for the first time, bicoherent-state path integration as a method for quantizing non-hermitian systems. Bicoherent-state path integrals arise as a natural generalization of ordinary coherent-state path integrals, familiar from…

Mathematical Physics · Physics 2020-10-07 F. Bagarello , J. Feinberg

We {\em derive} the exact configuration space path integral, together with the way how to evaluate it, from the Hamiltonian approach for any quantum mechanical system in flat spacetime whose Hamiltonian has at most two momentum operators.…

High Energy Physics - Theory · Physics 2007-05-23 K. Skenderis , P. van Nieuwenhuizen

We consider an auction type equilibrium model with an insider in line with the one originally introduced by Kyle in 1985 and then extended to the continuous time setting by Back in 1992. The novelty introduced with this paper is that we…

Trading and Market Microstructure · Quantitative Finance 2025-10-09 José M. Corcuera , Giulia Di Nunno

We present a numerical path-integral iteration scheme for the low dimensional reduced density matrix of a time-dependent quantum dissipative system. Our approach simultaneously accounts for the combined action of a microscopically modelled…

Quantum Physics · Physics 2016-10-12 A. M. Barth , A. Vagov , V. M. Axt

The theme of doing quantum mechanics on all abelian groups goes back to Schwinger and Weyl. If the group is a vector space of finite dimension over a non-archimedean locally compact division ring, it is of interest to examine the structure…

Mathematical Physics · Physics 2008-11-06 V. S. Varadarajan

In this paper a Feynman-type path integral control approach is used for a recursive formulation of a health objective function subject to a fatigue dynamics, a forward-looking stochastic multi-risk susceptible-infective-recovered (SIR)…

Optimization and Control · Mathematics 2023-03-14 Paramahansa Pramanik

In this paper, we study the computation of sensitivities with respect to spot of path dependent financial derivatives by means of path weighting. We propose explicit path weighting formula and variance reduction adjustment in order to…

Probability · Mathematics 2024-11-21 Liu Xuan , Gauthier Michel

We present a systematic prescription for calculating cosmological correlation functions for models with derivative interactions through the wavefunction of the universe and compare this result with the "in-in" formalism -- canonical…

High Energy Physics - Theory · Physics 2022-07-06 Aliakbar Abolhasani , Harry Goodhew